Which of the following is a problem with the price system that can lead to fluctuations in output?
A. The price system works silently in the background.
B. Prices can be slow to adjust.
C. Prices may be flexible.
D. All of these
Answer: B
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The terms of trade equation is written as
a. index of export prices – index of import prices b. 100 × (index of import prices × index of import prices) c. 100 × (index of import prices + index of export prices) d. 100 × (index of import prices/index of export prices) e. 100 × (index of export prices/index of import prices)
Which of the following states had the highest incidence of union membership as a percent of all wage and salary workers in 2012?
a. New York b. Arkansas c. North Carolina d. California
When a trading opportunity is presented to a heterogeneous group of potential traders, those who accept it will be often
A. smarter, on average, than those who do not accept it than those who do not. B. better, on average, than those who do not accept it. C. worse-on the average, than those who do not accept it. D. no different than those who do not.
To increase the nation's money supply, the Fed can:
A. increase the discount rate. B. decrease the discount rate. C. sell bonds. D. increase the required reserve ratio.